Expanded Tax-Credit: Does This Offset Any Taxes You Owe, or Will You Get a Check?

Many have had this question in relation to the expanded tax-credit. Feel free to comment or post your own related questions. I would be happy to help in any way that I can.

“In regard to the homebuyer credit, I am eligible for the $6500. Does this credit simply offset any taxes I would pay in for 2009 & 2010, or does the government send a check for $6500 to me? I’m just wondering how this credit really works”.

Answer:
The tax credit is used to offset your tax liability when you file your tax return. If your tax liability is less then the amount of credit you qualify for, the difference will be sent in the form of a check. You need to attach a copy of the HUD-1 statement for the credit and if you sell your property within 3 years, the credit has to be repaid.

More Specifics on the Tax-Credit for Existing Home-Owners:

To claim any credit, buyers must have a contract by April 30, 2010 and close by July 1, 2010.

The income limit has been raised to $225,000 for couples and $125,000 if single.

First-time buyers can claim an $8,000 credit ($4,000 married filing seperate), as before.

Buyers who already own the home they are selling (or have sold), and have lived there for five of the past eight years can claim up to a $6,500 ($3250 married filing seperate) tax credit (on homes worth $800,000 or less).

* Both credits apply only to primary residences.

* Also new is that you must attach documentation of purchase to tax return.

**I hope this answers any questions that you had regarding property taxes and the tax-credit.

If you are planning on purchasing a new home or selling your existing home, I would love to assist you in your buying and selling experience. Feel free to visit my website at:

www.TheFastestGrowingCityinTexas.com or my linkedin profile to hear what current and past clients are saying about me: www.linkedin.com/in/amyarey